Keep Me Informed
< TOOLKIT HOME

Commercial Linkage Strategies

  • What is it?
  • Why Use it?
  • How to Use It
  • Key Players
  • Challenges
  • Success Factors
  • Financing
  • Policy
  • Case Studies
  • Resources

    • Success Factors

    Ingredients for Success

    Develop an Informed Analysis

    A crucial element in developing and winning a successful linkage campaign is background research. In addition to the research necessary to develop a good proposal (see How To Use It section), be prepared to argue for the need for and fairness of a linkage program in general. The following information can be very helpful:

    • What state programs benefit commercial development, and how much has been spent on them over the past several years? Specific examples of programs can help counter arguments that developers receive nothing from the government and therefore owe nothing in return. The state agency that administers economic development programs can provide this information. 
    • How do employers benefit from nearby affordable housing?   Check to see if there have been any local studies of this issue. If not, conduct a quick survey of a few employers who are struggling to hire and retain entry level workers because affordable housing is scarce.
    • How do municipalities benefit from affordable housing?   Collect studies that document the broad social benefits of affordable housing, from reduced homelessness to increased school performance. See for, example, the Kids Mobility Project Report, from the Family Housing Fund.

    Use Technical Assistance

    An effective linkage program is not extremely technical, but assistance from a lawyer and a planner with economic development expertise is nonetheless worthwhile. 
    Lawyers can help:

    • Develop a program that minimizes the potential for a court challenge
    • Determine basic steps required for enacting a program and write enabling legislation in the proper language
    • Navigate local laws surrounding exactions (see Challenges section).

    Planners can help:

    • Develop a program that minimizes the potential for negative impact on the city's economy
    • Review and analyze data about projected economic development, job growth, and affordable housing demand and help identify the appropriate rate for the fee 

    Reach Out to Possible Opponents

    Don't Write Off the Business Community

    While business people are not likely to be a linkage campaign's core supporters, some employers are starting to recognize the importance of affordable housing to the long term can give a linkage campaign a big boost, and diffiuse knee-jerk opposition from their colleagues.

    It is important to reach out to unions early in the process and listen to their concerns regarding a linkage fee. Chances are their worries can be addressed as the linkage fee program proposal is developed, but if opponents get to them first with tales of the death of commercial development and loss of jobs, it will be hard to repair the damage.

    Developers, especially those with ambitious commercial development plans, are unlikely to support a linkage program in large numbers. However, there will be some in the business community who recognize the importance of affordable housing to the long-term economic health of the community. And residential developers may gain from an effective linkage program.  It's worth the effort to recruit business leaders to endorse a linkage campaign.